BYD and FAW Group are aiming to invest in DJI’s automotive business unit – one of the few Chinese companies capable of developing partially automated driving software – as part of the latest effort by traditional automakers to catch up with rivals such as Tesla, local media has reported. 

Why it matters: The news comes at a time when a growing number of automakers and suppliers are expanding their alliances in hopes of accelerating progress in and sharing the cost of making partially automated driving passenger cars. In China, the technology is being popularized by the likes of Tesla, Huawei, and Xpeng Motors. 

• It is also the latest example of Chinese auto majors taking steps to turn their business partnerships with tech companies into deeper capital relationships. Changan Automobile recently announced it will invest in a new venture set to absorb Huawei’s car business unit. 

Details: BYD and FAW, a manufacturing partner of Volkswagen and Toyota in China, recently conveyed their message to DJI Automotive, the car business unit of the namesake drone maker, 36Kr first reported on Wednesday (in Chinese). Citing people with knowledge of the matter, the report did not put a figure on the planned investment.

• BYD is planning to roll out partially automated driving functions for future affordable models priced at RMB 200,000 ($27,920) or below in 2025 with assistance from DJI, a person close to the company told TechNode on Thursday. 
• DJI is appealing to original equipment manufacturers (OEMs) for its low-cost advanced driver assistance system, as they have been struggling to lower costs and repeatedly cut prices of their cars, another source with direct knowledge of the matter told TechNode. 
• DJI, China’s biggest drone maker, stated that its technology suite, including an affordable computing chip from Texas Instruments (TI) with only a few cameras, could enable cars with automatic lane changing and on-ramp to off-ramp functionalities on Chinese expressways. 
• Some EV makers, including NIO and Li Auto, have developed similar functions based on Nvidia’s more expensive DRIVE Orin processors, with each offering 254 trillion operations per second (or TOPS), compared with the 32 TOPS offered by a top-end TDA4 chip from TI. 
• “While BYD is not the forerunner in autonomous driving, it has the ability to be a fast follower which will likely meet the needs for the majority of Chinese consumers,” Bernstein analysts wrote in a Jan. 22 note, citing economies of scale, which allows it to collect more data for software training from its large fleet, as one of the reasons.
• BYD and DJI did not respond to TechNode’s requests for comment. 

Context: Shenzhen-headquartered DJI separated its car business into an independent company in late 2022 and became open to external funding with a target valuation of $1.5 billion, Chinese media outlet Leiphone reported in August. 

• The drone giant has worked with SAIC-GM-Wuling (SGMW), a General Motors China joint venture, since 2019, with the first model integrated with its automated driving technology, the Baojun Kiwi EV, going on sale with a price tag of RMB 102,800 in September 2022. 
• BYD showcased a Yangwang luxury off-roader that integrates an unmanned aircraft on the car’s roof in a collaboration with DJI during a press event on Jan. 16. It also announced plans to release at least 10 new models this year featuring advanced driving technology.

READ MORE:  BYD’s Denza launches cheaper driver assistance system with Nvidia amid rising competition

China said on Monday that it will impose export controls on certain high-performance drones with both commercial and military potential applications to prevent their use by armed forces, in a setback for strong exporters such as Shenzhen-based drone maker DJI.

Why it matters: The measure is an extension of an existing export ban on unmanned aerial vehicles (UAVs) for military use imposed on drone makers by Chinese regulators since August 2015.

• It comes after Beijing faces accusations from the US that China may supply Russia with military technology for its conflict against Ukraine, Reuters has reported. 

Details: Drones with radio power exceeding the limit set for civilian products globally, will be subject to export controls from September “to protect national security and interests,” China’s Ministry of Commerce said in an announcement on Monday (our translation). 

• This will also apply to drones that are equipped with sensors such as multispectral cameras in a wide wavelength range, and those that can determine their position and navigate beyond certain distances using lasers, as well as those capable of carrying “unauthorized” payloads. 
• The two-year order requires drone exporters to apply for an export license with the submission of proof documents that show how their products will be used and who will be the end users. 
• The ministry will also impose export controls on drone components ranging from engines to radio equipment, according to another document published Monday. It has not specified when the restrictions will be lifted. 
• China is concerned that certain high-end civilian drones could be repurposed for military use, and insists that its proposed measures are not against any specific country or region, China Daily cited a ministry spokesperson as saying.  
• DJI has always opposed the use of its products for war-related purposes and will strictly adhere to the temporary export control policy to ensure full compliance, Zhang Xiaonan, a senior director at DJI, posted on the Twitter-like platform Weibo. 

Context: DJI, with the lion’s share of the global consumer drone market at over 70%, suspended sales and after-sales services in Russia and Ukraine in April 2022. Its products have, however, been available from third parties in the two countries, Chinese media outlet Caixin cited industry insiders as saying.

• Beijing on July 3 released restrictions on exports of gallium and germanium, two precious metals used in making chips and radars. Earlier this year, Japan and the Netherlands decided to limit the sale of certain types of chip making equipment to China. 

Search giant Baidu has accused a former executive of corruption and handed the case over to the police, the company said on Tuesday.

Why it matters: An increasing number of Chinese firms have launched anti-graft initiatives that mimic the Chinese state’s approach to dealing with misconduct.

• Since 2013, Chinese president Xi Jinping has led a far-reaching campaign against corruption, targeting members of the government and corporate figures.
• Apart from Baidu, companies including lifestyle services giant Meituan, dronemaker DJI, e-commerce company JD, and ride-hailing firm Didi have sought to weed out corruption.

Read more: Even global tech darling DJI is not immune to culture of corruption

Details: Baidu’s Professional Ethics Committee said Fang Wei, a former vice-president at the company, is suspected of corruption following an internal investigation and has been handed over to the police.

• Wei served as a director of finance at the company until he was promoted to vice president of finance in 2018. He has also held supervisory roles at more than a dozen Baidu companies.
• Baidu’s ethics committee did provide details about Wei’s alleged offenses.
• The company said it will crack down on any behavior that violates the law or infringes upon professional ethics.
• Baidu dismissed 14 employees in August that were allegedly involved in 12 cases of internal corruption. The company accused those involved of bribery, infringing on trade secrets, fabricating expenses for reimbursements.
• Like most companies, Baidu has stepped up its anti-graft campaign in recent years. The search giant set up its ethics committee in 2011 and has since investigated more than 100 employees.

Context: Anti-corruption campaigns are common among China’s tech companies but some take more drastic steps than others.

• E-commerce giant JD.com sent some of its employees on prison tours to view firsthand the cost of corruption. These tours are common in state-owned enterprises or financial institutions, not tech companies.
• Meanwhile, drone-maker DJI said last year that it was investigating 45 employees for graft, adding that the company could lose up to $150 million as a result of internal fraud.
• E-commerce giant Alibaba, smartphone maker Xiaomi, gaming and social media giant Tencent, and telecommunications firm Huawei have all launched similar campaigns.

Chinese drone-maker DJI said it will strengthen its efforts to fight graft within the company, following an internal investigation that found it had lost $150 million due to corruption.

In a statement (in Chinese) posted on its corporate website on Wednesday, DJI vowed to keep cracking down on corruption, saying it is “the most serious problem [DJI] has encountered” as it has expanded over the years.

Earlier this month, DJI placed 45 former and current employees under investigation for allegedly accepting perks for purchasing substandard products or paying above-market prices to suppliers. Of those under investigation, the company handed over 16 people to the police and fired 29 others. 

DJI was not immediately available for comment when contacted by TechNode.

Even global tech darling DJI is not immune to culture of corruption

Corruption investigations are commonplace in Chinese enterprises. Recently, e-commerce giant JD.com, lifestyle services platform Meituan, and ride-hailing giant Didi all conducted similar investigations. However, the incident at DJI is particularly significant. The company is held is in high esteem for its internationalization efforts and was one of the first companies to bring drones to the masses.

“From purchasing raw materials to producing components, … corruption from all levels raises supply chain costs by between 16% and 33%, creating a huge volume of hidden losses to enterprises,” the company said in the statement.

Some dismissed employees later posted on popular messaging and social media app Wechat that they were “victims of internal strife.” DJI rejected the claims as rumors intended to cover up their misconduct. The company also said that it is facing severe challenges in dealing with corruption within its ranks.

Chinese tech firms have been crippled by internal corporate crimes amid a slowing economy and weakening demand, leading to a slew of intensified anti-graft efforts.

Yang Weidong, former president of Alibaba’s video streaming platform Youku, was replaced following a police investigation for alleged “economic issues” in December, though very few details were provided. This was followed by ride-hailing giant Didi dismissing more than 80 employees earlier this month for “serious” violations of the company’s rules, which involved cases of fraud, bribery, and information security breaches.

Drone company DJI loses $150 million to corruption – Venture Beat

What happened: Chinese drone-maker DJI has published an anti-graft announcement that places 45 former or current employees under investigation for allegations of fraudulently elevating product prices. Of the total, 16 have been sent to the police and 29 have been dismissed by the company. DJI said it expects losses to exceed RMB 1 billion ($150 million) as a result of the incidents.

Why it’s important: While facing rising external competition, China’s tech companies are confronted with more and more internal pressure from corruption. DJI’s news is not a single case. Tech giants including Tencent, Baidu, Huawei, JD, and Meituan-Dianping have all launched similar initiatives in an effort to stamp out corruption. In a recent case, ride hailing-giant Didi dismissed more than 80 employees last year for fraud, bribery, and information breaches.

Chinese tech vloggers, so far at least, have had lots of nice things to say about the latest product of Shenzhen-based drone maker DJI, the Osmo Pocket.

One video review, which has racked up 41,000 views in under 20 hours, resembles a commercial, complete with scenes (shot on the Pocket, of course) of beaches and quaint seaside towns.

“It’s extremely convenient for women,” the reviewer concludes. “It’s small and light, it’s very simple to fold up, and I can fit it in my purse.”

It’s unclear whether the review is sponsored or not, but at least part of her assessment rings true. The Pocket’s tiny, extendable frame can be held in one hand, and its features are designed to be user-friendly.

Both Chinese and English-language tech sites are already abuzz with reviews, seeming to agree that the miniature handheld filmmaking tool would be a great tool for vloggers, if not necessarily more serious users.

In addition to the stabilizing gimbal and subject-tracking shared by other products in DJI’s Osmo line, the Pocket has a ‘selfie mode’ that keeps one’s face at the center of shots. An accompanying app provides preloaded templates for video-making and options to share straight to social media, both seemingly aimed at aspiring KOLs.

Priced at RMB 2,499 in mainland China ($349 in the US), however, it’s over double the cost of its direct predecessor, the Osmo Mobile 2 (RMB 899). In addition, although users can attach their smartphones, the limited screen space could be a turnoff for pro users.

DJI’s latest release might be seen as a direct competitor to GoPro’s Hero 7 Black ($399.99) which, based on its promotional video, is targeted at an audience of dirt bikers, winter sports enthusiasts, and similar. The Hero 7 Black is also smartphone-friendly and even more compact than the Osmo Pocket, although it lacks a selfie mode.

Although DJI made its name with high-quality drones, particularly its Phantom line, it’s since expanded its products to target more casual consumers. People who may not, say, want to put down RMB3,199 for a ‘starter’ drone like the Spark, or the numerous accessories that go with it.

With its latest entry into handheld photography, however, DJI is getting close to that baseline. It might be looking at the money being made by China’s growing body of professional livestreamers, who receive a cut of digital gifts given by their fans. Although of course, in today’s fast-paced media environment, you don’t have to be Chinese to appreciate the importance of looking good on camera.

Ahead of SupChina’s ‘Next China’ conference in New York, we spoke to SupChina editor and old China hand Jeremy Goldkorn about all things China tech. Goldkorn spoke about how China has become a true innovator, how developments in the sector have changed the way other countries perceive China, how the country will lead in healthcare, and how all this feeds into frenemies and changing geopolitics. And how he loves his DJI drone.

“China is no longer what we understood ten years ago, the reality is completely different now and tech is one of those things,” said Goldkorn about what he perceives to have been a watershed in how the world views China and why tech is such an important part of the Next China: How the Middle Kingdom Will Reshape Your World. The conference has sold out but can be viewed via live stream.

What changed your opinion of Chinese tech?

What led my change [of opinion] was seeing actual Chinese innovations. For me that started to happen was when Weibo suddenly was a much better product than Twitter within a year of being a complete clone. It made it more usable, easier to find stuff, easier for mainstream non-techies to use, but it still retained a great conversational flavor, lots of multimedia was enabled very quickly, and advertising. In any aspect of a microblog, they were well ahead of Twitter and still are.

Then Didi came along and that for me was a big moment because it wasn’t a ripoff of Uber. It was a similar idea, but when we initially used it it was mostly to hail actual taxis. That was a completely different way of thinking and very suited to cities like Beijing which had a lot of taxis. People were thinking innovatively and acting on it, which is more important than just having innovative thoughts–acting on them.

WeChat wasn’t an invention of a whole new category, but it was the innovation and development of some technically excellent products that work seamlessly.

People were playing with different [P2P lending and small lending] business models. It was a whole new category where Chinese companies could just do whatever the hell they thought, they didn’t even have anyone to copy. There were just a handful of P2P companies in other countries and most of those are pretty bundled up in regulations on what they’re able to do, so Chinese companies didn’t need a model from abroad.

Then Xiaomi didn’t invent a new category but in such an amazing period of time they made a really great product and they did innovate in terms of the sales channel and business model.

The thing for me that did it completely was when I bought a DJI drone. It was kind of like when I first got an iPhone. This thing just works, it’s a thing of beauty. Just phenomenal. The quality, the design.

With bike sharing there are problems, but the model is a sensible way to do bike sharing instead of these stupid docked bikes. That was a fantastic Chinese innovation. There are problems but I believe that industry will sort itself out.

Health tech and healthcare are a part of the Next China conference. Why is this sector so significant?

I try to make sure we have a lot of healthcare coverage because the Chinese healthcare industry–everything from hospitals and clinics, doctor education and training, drugs pharma, biotech, genetic engineering, cloning, gene editing, stem cell therapy, use of AI in certain surgery–China is going to be at the forefront of many of these new developments and to understand the Next China, you’ve got to understand where healthcare is going.

China’s also got huge problems, like the healthcare system is a mess. I mean the United States is also a mess in a completely different way, but China is more of a mess really in terms of how painful it is to actually get a disease treated. That means there’s a lot of problems to solve, a lot of opportunity, but if things go wrong, things can go really wrong.

All aspects of healthcare are a huge story for understanding China. Everything that happens in this area is going to impact the rest of the world, whether it’s Chinese innovations, Chinese-bred superbugs–you name it, China’s a player already.

When it comes to the US and China in healthcare, they’re destined to be frenemies, both competitors, and cooperators.

There’s been a lot of discussion over the past year of the rivalry between the US and China in artificial intelligence. How do you see this playing out?

The feeling on both sides of the Pacific is that the rivalry is very real and I think this year was the year–what I call a Sputnik year–and one of the major factors was that the American media and political classes woke up to the fact that China is a real AI power and its strength is growing. And because China has most of the resource that is key to AI–the data–it’s going to be a significant player. But on the other hand, if you look at the big firms involved in AI, both Chinese and foreign, you’ll see that Google has set up an AI research base in China, Baidu’s got one in Silicon Valley, Didi in Seattle. It’s the same as many of these things between the US and China: a frenemy relationship.

Could this tech rivalry have more significant ramifications?

I don’t think any other country feels its great power status is being threatened. For the last half-century or more, America has been used to being the biggest, baddest player in the room. It’s uncomfortable when some upstart comes along and challenges your alpha status. I think the anxiety from the US is much more intense, whereas, for example, Britain conceded quite some time ago that it’s not a great power.

At TechNode we like to think tech is an important part of the overall China story. How big a part do you think tech plays in understanding China?

Tech intersects with every story everywhere now, but I think in China that is particularly the case. First of all the crazy contradictions of China are embodied so crystal clearly in tech. For example, the most censored internet on the planet is also in some ways the most vibrant. The ethical, moral and political considerations about the way the Chinese government controls tech and their ideas of cyber sovereignty and ways of promoting these ideas to the outside world such as the Wuzhen Internet Conference, these are things that if you’re interested in Chinese politics or culture are vital to understand and are based on network technologies. Then there are the ways tech is changing Chinese lives so rapidly and the leapfrog effect–people leaping over credit cards straight to mobile payment, over desktops to mobile first.

How do you hope conference goers’ understanding of China tech will be changed by Next China?

We’d like people to go away having heard a diverse range of views about subjects that cover everything from business to culture to politics, and I think that these views will shape their understanding of what’s coming in China over the next decade. We believe everything is being rethought in terms of what China is. It’s been hyped for so long, but it’s happening now–it’s the real deal.

Tech runs through everything. Tech is affecting the financial system, how people do business, the way the Communist Party does propaganda, politics. It’s changing the relationship of citizens to the government, things like the social credit system which are deeply connected to a number of different trends in society, from authoritarian controls to the need to develop a credit system, and the huge problem of regulating public behavior, which is sort of a cultural problem and they use tech to solve.

So I don’t think you can talk about China and where China’s going meaningfully without technology being a part of it. I guess that’s what our tech thing is, and that’s why our viewpoint is different from a pure tech conference because what we’re saying is ‘where’s China going?’ and one of the things we need to understand is tech, we’re not just having a conference about what’s going on in tech.

Updated: A previous version of this post stated that Luo Zhenhua is the vice-president of DJI. Luo Zhenhua is now the president of DJI.

The drone industry has not gone cold, said DJI president Luo Zhenhua (Roger Luo) in an interview with Phoenix News (in Chinese). The Shenzhen-based drone maker is currently the world’s top seller of consumer drones, with a global market share of 70%.

During the last two years, many UAV companies have gone through a reform period, laying off workers as competition has gotten fiercer and startups found it harder to convince investors in their profitability. This has sparked doubts over the rise of the consumer drone market which was additionally hit in China with stricter regulation for personal use of drones.

However, according to Luo, this impression is a bit wrong, adding that they still need to be careful since “drones are not like mobile phones.” When people say that the industry is hot, they mean that the capital is hot, and now capital is back to reason, he said.

It could be said that Chinese drones rule the sky. China is one of the largest manufacturers of drones globally with 70 % of its output being sold abroad. The Chinese Ministry of Industry and IT expects the sector to grow 40% each year by 2020 and 25% after that.

DJI expects its sales will reach RMB 18 billion ($2.7 billion) in 2017. Sales in 2016 increased by 65% year on year breaking the RMB 1 billion point. Consumer drones accounted for 80% of the profit. In 2018, DJI is planning on expanding its staff with special attention to the agriculture sector. The company has recently upped its stakes in the agricultural drone area by lowering the price of its drones by 12%—a move that has got its competitors worried. DJI holds 70% of the agricultural drone market. However, the company is yet to make a profit in that field.

This is the fifth post of “Now in Shenzhen”, where TechNode visits a handful of Shenzhen-based companies leveraging Shenzhen’s core strength: manufacturing. 

EcoFlow Tech, the battery startup founded by ex-DJI employees, announced on April 12th the launch of a mobile power station, RIVER. With an array of ports and 500-watt total output, RIVER can charge up to 11 devices simultaneously or serve as a smart power source for a multitude of needs, from flying drones, camping, and filmmaking to emergency management and construction.

“One of the biggest barriers to the widespread commercial application of drones is battery life. Everybody wants a drone that can stay in the air longer,” said Eli Morgan Harris, CEO of EcoFlow Tech told TechNode. “China is well known for being a global OEM battery manufacturer. That masks two things: China is best-in-class in large-scale industrial production know-how. It has incredible engineering prowess that is reality-based, not theoretical. We are combining our designs with these best in class traits.”

B2C drone market

The global market for commercial drones will balloon to as much as US$ 127 billion by 2020, according to Bloomberg. A drone battery can cost US$ 150, and people often use 8 drone batteries on a single mission.

“Our focus is on both the B2B and B2C markets, but the B2C market is quicker to enter. We are focused on 8 key B2C markets for consumer electronics, including the US, Canada, EU, UK, Australia, China, Japan, and South Korea” Eli says.

The team is also planning to enter developing markets like South America, South East Asia, and Africa, especially in regions that do not have access to reliable power.

“We will be able to power classrooms in Malaysia so that students can use computers and lights. We can power water filters to bring clean water to communities in Kenya. We are talking to multiple government and non-government agencies now,” Eli says.

B2B drone market

B2B drone market is quickly going to surpass the B2C market, where the team sees a big opportunity in helping drones stay in the air. Industrial use of drones for farmers, surveyors, and disaster relief can require dozens of flights of drones.

“Drones can be also used in 3D modeling of construction, or calculating volumetrics of stockpiles of dirt to optimize the supply chain. Using RIVER, a construction site won’t need long power extension lines or generators,” Eli says.

With a shelf life of over one year, RIVER can be connected to solar panels to be charged from wind power and solar power. RIVER is currently on Indiegogo for the early bird pricing of $499. The team says they will begin shipping RIVER before the campaign even ends.

Founded in 2016, EcoFlow Tech battery startup company has over US$10 million in backing from leading Chinese supply chain and manufacturing companies.

Zero Zero Robotics, the Chinese self-flying camera drone maker, announced that its flagship flying camera Hover Camera Passport is now available exclusively on Apple.com and in Apple stores.

The device will hit the shelves of Apple stores today in five countries and regions of United States, Canada, China, Hong Kong, and the United Kingdom, the company told TechNode, adding that the gadget will be available in additional countries next month.

The company is also offering a discount price for the Apple-exclusive bundle (US$ 499.95), which includes a Passport, the flagship travel-friendly size flying camera, along with the essentials: two batteries, one charger, adapter and an easy-carry bag. 

Launched in October last year, Passport is among a slew of AI-enabled camera drones which allow users to close-up photos and videos. Now entering a new partnership with Apple, the company has made several updates to enable better integration with Apple’s video capabilities like iMovie and Final Cut Pro X as well as easier sharing and editing from Apple devices. In addition, a new user interface has been integrated into the Passport and its companion app, which supports automated media editing.

Driven by the drone boom, portable flying-camera startups have gained a lot of traction last year. Many of the similar companies, such as Snap, Lily, Staaker, have received a lot of attention, doing well with booking preorders, however, that’s no guarantee for success. Lily, the autonomous camera drone that sold a whopping $34 million in preorders, shut down in January this year. Hover Camera is one of the first to ship their product.

Currently, Hover Camera has limited distribution channels in overseas markets with its official website only supporting shipment to the U.S. The new partnership with Apple will significantly enhance its presence in the global market.

More importantly, there’s an obvious customer crossover in the tie-up. A majority of Apple users are Hover Camera’s potential buyers, who would use Apple devices to control shoot and edit footages from the startup’s product. Actually, this is also the logic that works with Apple’s partnership with another Chinese drone manufacturer DJI one year ago.

“We’re thrilled to bring autonomous flying photography into the hands of consumers who are excited by truly innovative technology that impact their everyday lives,” said MQ Wang, founder and CEO of Zero Zero Robotics. “We want more customers to capture their memories in a near-effortless way through breathtaking perspectives that can only be achieved through Hover Camera Passport.”

Zero Zero Robotics was co-founded in 2014 by former Twitter software engineer and Stanford Ph.D., MQ Wang, and Stanford Ph.D. Tony Zhang.

China’s civil aviation watchdog is about to introduce a real-name registration policy for unmanned aerial vehicles (UAV) in a bid to address mounting concerns over drone threats to the country’s aviation safety and national security, local media is reporting (in Chinese).

The civil use of drones has had a growing presence in China since 2011. Despite the great advantages they bring to people, such as surveying and mapping, capturing live events, and small item delivery, they have created safety and security problems. Since this January, there have been 11 reported cases on flights affected by UAVs entering “clearance protection areas” in China.

China has more than 20,000 drones, but only 10,000 operators of the drones have acquired UAV pilot licenses, according to Shu Zhenjie, director of the UAV Lab at the Aviation Industry Corporation of China (in Chinese).

“For the civil aviation administration, our main responsibility involves drone registration, which includes requiring drone owners to sign up with their real names,” said Feng Zhenglin, director of the Civil Aviation Administration of China (CAAC).

“We will introduce some convenient ways for the management of small UAVs of recreational purpose or of sports purpose. For instance, we plan to set up electric fencing in clearance protection areas around airports,” Feng added.

The upcoming new regulation will prod major players into taking technical corrections, including DJI, Zerotech, Xaircraft, and PowerViroment.

China’s consumer drones industry is set to continue its boom over the next coming three years. Market research firm IDC, in a report released last December (in Chinese), estimated  China’s aerial photography drone market to top RMB 25 billion by 2020, with a compound annual growth rate of 86.5%.

Chinese companies have taken a leading role in the years-long transition of drones from niche cutting-edge technology to affordable consumer electronics. However, the once emerging sector is already crowded with DJI dominating. Seeing this, one company is moving from air to sea to capture market share.

Developed by Shenzhen-based startup Chasing Innovations, GLADIUS is a smart ROV (remotely operated vehicle) underwater drone built for filming, observing, and exploring. As a portable device, GLADIUS measures 430mm * 260mm * 95 mm and weighs only 3kg. The gadget comes with two built-in batteries, which can last up to 3 to 4 hours on one charge.

One cool thing about GLADIUS is its ability for precision maneuvers. The Quattro-thrusters design makes it able to nimbly move in all directions at a speed of up to 4 knots or 2m/s.

In addition to speed and portability, GLADIUS also excels in terms of the areas it can cover. The underwater drone uses a 100 m buoyant tether to communicate to a towable buoy on the surface of the water. The pilot connects to the buoy using wireless communication technologies, CMO Yang Yang told TechNode.

The vehicle can go 100 m below the water surface via the tether and 500 m horizontally through long range Wifi communication.

“Using a wireless towable buoy greatly increases the practical range of the vehicle since a physical connection between the vehicle and the pilot doesn’t need to be maintained,” he noted.

The underwater drone can stream live video with built-in Full HD camera and LED lighting, which enables users to take high-quality 16-megapixel photos and 4K videos. Users can control the drone with a remote control that’s compatible with Android or iOS devices.

Chasing Innovations was started by former engineers from Huawei and now it’s developed to a team of over nearly 20 employees. The company is going to kick off a crowdfunding campaign for its products on Indiegogo in February. The standard version will be priced at 1,399 USD while the premium version will go for 1,699 USD. The super earlybird price on Indiegogo could be as low as 599USD.

Image credits: Chasing Innovations

The global commercial drone market is taking off as improvements in technology transform drones from a specialty device into an affordable consumer product. A huge market for consumer drones is blossoming and already, and China is making its mark.

Data from state media outlet Xinhua shows that drone exports from China’s hardware hub Shenzhen amounted to $2.7 billion yuan ($412 million USD) between January and November 2015, an increase of 9.2 times over the same period in 2014.

Chinese drone makers like DJI lead the trend with unmanned aerial vehicles (UAVs) equipped with application for various civilian uses. Here, we’ve listed four of the latest drones that you can’t miss. Leave us a comment to tell which one is your favorite!

DJI Phantom 4

You can’t talk about Chinese drones without talking about the DJI, so we’ll get it out of the way first. DJI released their Phantom 4 in March. Compared with the Phantom 3, the device is considerably faster thanks to more efficient motors that allow a maximum speed of 72km per hour. It’s also smarter. Using its frontal sensors, the Phantom 4 has automatic obstacle avoidance, which is the biggest significant upgrade from the Phantom 3. Finally, the Phantom 4’s camera can shoot 12MP photos, record 4K videos, and film at a rate of 120fps (frames per second) in 1080p resolution.

The upgraded experience doesn’t come cheap. The gadget is sold for $1,399USD in the U.S. and 8,999RMB ($1,349USD) in mainland China, the most pricey device yet from DJI’s Phantom series. Extra batteries are expensive too.

EHang Ghost 2.0

Like the its predecessor Ghost 1.0, EHang’s Ghost 2.0 is piloted with a mobile phone rather than a traditional RC controller, which is line with the company’s goals to develop easy-to-operate drones. The company fine-tuned the entire user experience from the app to the connectivity. But the most interesting selling point is perhaps its complementary VR goggles, which enables video feed from the on-board camera.

Mi Drone

Through its partnership with China-based Flymi, Xiaomi revealed its first drone product this May, though the company hasn’t specified a shipment date yet.

The new gadget features a 360-degree camera and a remote controller. Like other products of Xiaomi, Mi Drone is offering relatively good specs for a budget price, though we haven’t tested it out yet. It’s set to retail at 2,499RMB ($375USD) for the 1080p version and 2,999RMB ($450USD)for the 4K version.

Xiaomi launched a crowdfunding project for the 1080p version since May and the 4K version is expected to undergo public testing at the end of this month, according to the company.

ZeroTech Dobby

Dobby, a foldable hovering drone made for selfie fans, is the joint effort of Chinese drone maker ZeroTech and Tencent. The drone is easy to put into your pocket, and only 135 by 67 by 36.8mm when folded with a weight of 199 grams. It comes with  a 13 million pixel camera that can shoot 4K videos. Users can control the device through a smartphone app using their voice or gestures.

Drone-flying has been an elusive hobby for those with little faith in their flying ability.

The idea of fishing a thousand-dollar-plus flying machine out of trees and gutters is enough to turn the most hardy beginners off drones, but DJI’s newly released Phantom 4 could change that.

The $1400 USD addition to the DJI line is the most expensive Phantom model yet, but it comes with a serious upgrade: it can autonomously avoid obstacles.

The drone features five cameras, two forward facing, two on the underside along with the 4K central camera. Together the images are compiled in the DJI’s software to produce a 3D model of the surrounding environment, allowing the drone to maneuver around obstacles.

The DJI Phantom 4 represents a new milestone in the era of consumer drones.

While autonomous obstacle avoidance technology has already been a beta feature of specialized professional drones and limited concept releases, the DJI Phantom 4 represents the first ever consumer-ready iteration of such software, bringing complex maneuvers and filming techniques within reach of the beginner drone pilot.

The drone is capable of avoiding buildings, trees, other drones, aircraft and even humans. Test footage of the drones show it making graceful arcs around buildings, crowds and pine trees. The autonomous feature allows amateur flyers to take ambitiously close footage without risking damage to the $1400 USD vehicle, bringing down a major barrier for new entrants.

“With the Phantom 4, we are entering an era where even beginners can fly with confidence,” said DJI CEO Frank Wang. The feature can also be disabled for more experienced pilots.

Autonomous object avoidance isn’t the only beginner-friendly feature added to the latest Phantom: ‘TapFly’ allows the drone users to set a maximum distance and simply tap the screen to reorientate the drone, meaning that users no longer have to tackle the dual stick controller to get a smooth video capture.

The drone also added ‘ActiveTrack’ , a feature that can 3D map a moving object or person and automatically adjust to keep it (or them) in frame. The follow mode allows the drone to track at just 4-5 feet from the subject.

The Phantom 4 also features a larger battery, with over 28 minutes of fly time as well as an updated 4K camera with wide angle lens and 12-megapixel still shots.

DJI will be teaming up with Apple to sell the latest drone. DJI CEO Frank Wang is a self-professed fan of Apple and Steve Jobs, incorporating the brands minimalistic design into the DJI models long before the partnership.

The new pairing will boost the brand into the offline space. DJI opened their first flagship store in Shenzhen last November, though an overwhelming majority of the company’s sales are still online.

Note: You may need a VPN to watch this video within China

Here in Asia, we’re the first to see the sun rise. We’re the continent with the most people and some of the oldest civilizations in human history.

We’re also home to some of the most innovative hardware startups in the world. From “Startup Nation” Israel to high-tech Japan, Asia is a hotspot for exciting hardware, and it’s about time we had our own hardware competition.

At TechNode, we’re delighted to invite you to this year’s Asia Hardware Battle in Chengdu, where the top 15 hardware startups in Asia will present their products.

Most people know Silicon Valley as the heart of technological innovation, but what most don’t know is how more and more Valley tech giants are buying up technology from Asia. For example, in 2015, Apple acquired Israeli imaging company LinX and their 3D scanning technology, PrimeSense. The year before that, Google acquired an information security company called SlickLogin, also from the “Startup Nation.”

China is starting to see innovative hardware across all verticals: wearables, virtual reality, smart transportation, artificial intelligence, and more. And despite headlines of a winter in the Chinese economy, various tech industries in China are continuing to receive generous financing.

In the virtual reality industry, Noitom Ltd., a motion capture solution provider, and ANTVR, a VR hardware company, received $20 million USD and $300 million RMB in rounds of Series B funding, respectively.

China’s artificial intelligence industry got a nod from Google last October when the tech giant invested $75 million USD in Mobvoi, a speech recognition and natural language processing startup based in Beijing.

China’s UAV industry was especially well endowed with financing in 2015, as DJI, YUNEEC, and EHang all received millions of dollars in funding. Guangzhou-based startup Ehang also wowed everyone at this year’s CES in Las Vegas with their autonomous helicopter drone. Of course, investment money is just the start – what hardware startups do with it will determine their future.

If you’re an early stage, pre-Series A funded startup with an exciting product, we’d love to have you at this year’s Asia Hardware Battle. Not only will you meet hardware startups from all over Asia, you’ll also have the chance to meet investors from top-tier VC firms, like Sequoia Capital, Silicon Valley Bank, GGV Capital, and others.

Online applications are open until the end of February. We look forward to seeing you in Chengdu!

Asia Hardware Battle Timeline

1. Applications accepted: January 11th – End of February
2. Application screening period: March 1st – 5th
3. Finalist preparation period: March 6th – 30th
4. Final Presentation in Chengdu: March 31st

(Note: Due to visa processing, the timelines for Chinese startups and overseas startups are different)

Qualifications

1. Must be a hardware startup in Asia (see accepted regions below)
2. Must be early stage, pre-Series A funding
3. Must have released a prototype already

Regions

• Mainland China
• Japan
• South Korea
• Singapore
• India
• Israel
• Taiwan
• Hong Kong

What We’re Looking For

• Disruptive companies with innovative technology
• Companies that haven’t had a lot of media exposure yet

Rewards and Perks

• Tickets for our “VC Meetup” (50 top tier VC firms )
• A chance to attend 2016 ChinaBang Awards
• 15 Finalists have a chance to present on the main stage
• 15 Finalists will receive tickets to the 2016 ChinaBang Awards
• 15 Finalists will receive a roundtrip plane ticket to Chengdu and
  hotel lodging for 3 days
• 15 Finalists will receive feedback from a distinguished panel of judges
• Media coverage
• ….and more!

Click HERE to apply!

According to customs data released by state media outlet Xinhua, drone exports from Shenzhen – China’s hardware hub, amounted to $2.7 billion yuan ($412 million USD) between January and November 2015, an increase of 9.2 times over the same period in 2014.

Global commercial drone investment boomed in 2015, with a majority aimed at Chinese companies, including Shenzhen-based DJI, who wrapped up $75 million USD in May at valuation upwards of $8 billion USD.

Commercial drone makers have become the positive archetype of modern consumer hardware for China. Makers, such as DJI, have embraced global marketing strategies to eschew the copycat reputation often attached to Chinese brands. DJI is now the undisputed global brand leader in commercial drones.

Other notable Chinese drone brands that found funding 2015 include Yuneec, who secured $60 million from Intel in August. The company’s flagship Typhoon Q500 sought to compete with top names this year using 4k cameras and movement-tracking features.

Shenzhen-based EHang also locked down new funding in August, raising $42 million USD led by GP Capital. EHang wowed audiences at last week’s CES held in Vegas by unveiling an autonomous passenger drone capable of carrying a single passenger of up to 130kg. The vehicle has currently performed over 100 test flights, according to the company.

While investment in Chinese drone companies continues to grow, niggling regulatory concerns have overshadowed the industry. In August the government sought to cap exports of high-tech products linked to national security, including drones that can fly for over an hour or have advanced wind stabilization technology. Most commercial drones have a shorter flight time meaning they are currently unaffected by the regulations. The new rules do put limits on developing extended capabilities however.

Shenzhen-based drone maker DJI has announced an update to the ‘geofencing’ feature within their mapping service, meaning users will now be warned when they are flying into restricted zones including wildfires and prisons. 

Over the past year there have been several reports of fire-fighting helicopters that have been grounded due to unsafe conditions caused by amateur drone hobbyists flying near fire sites. Many Fire Watch Guard Services also have reported to have had found drones lurking around the region. Drone companies have since been under pressure to introduce software that can disable drones without imposing over-reaching restrictions. 

DJI’s new software will disable drones from flying by default in restricted zones, though users with a DJI account verified with a phone number and credit card will be able to unlock the drone regardless of the zoning. Under the new system, DJI will be able to assist authorities to track unauthorized users that have unlocked their drone within a restricted zone. 

DJI says the new software will provide “accountability”, but that the company itself will not collect personal data for commercial purposes. 

“We believe this major upgrade to our geofencing system will do even more to help operators understand their local flight environment, and to make smart, educated decisions about when and where to fly their drones,” says Brendan Schulman, DJI’s Vice President of Policy and Legal Affairs.

The software is a compromise between complete airspace freedom for drones and controversial blanket deactivation technologies that prevent firefighting staff, airline personnel and other authorized users from operating the drones in restricted spaces.

Currently DJI has a “No Fly Zone” system, enacted in 2013, that puts restrictions on drones flying close to certain areas including military bases and airports. The new system will be enacted in Europe and North America with other countries to follow.

DJI, the world’s largest commercial drone maker, is ready to bank on China’s mainstream consumers, opening their first flagship store in Shenzhen where the company was founded in 2006. 

The new store will open in a Shenzhen shopping centre before the end of the year, with an approximate floorspace of 800 square meters. 

DJI will use the store to market to buyers who haven’t had experience with drones before, signaling their faith in a mainstream local market. However the company continues to primarily sells their drones online, with most revenue coming from overseas.

DJI’s drones and accessories featured during Alibaba’s 14.6 billion USD Single’s Day sales for a cut price this month, while partnerships with local content providers including Ali-backed Youku Tudou have helped the company grow their brand name locally after whirlwind global sales.

DJI is the brand leader in China though dozens of new players are flooding the market. DJI set themselves apart early with high-end technology and global marketing. CEO Frank Wang is a self-confessed fan of Steve Jobs and Apple’s brand development, which is evident in DJI’s products and marketing. 

The DJI store will feature its most popular drones including the high-end Inspire 1 and the more consumer friendly Phantom 2 and 3 series. The company is currently working to expand their range through a partnership with Hasselblad photography. DJI bought a minority stake in the Swedish-based company which specializes in consumer cameras earlier this month.

DJI has expanded rapidly, with minimal funding outside their own cash flow compared to other Chinese drone makers. In May, they pocketed $75 million from Silicon Valley-based Accel Partners, concluding at a valuation of approximately $8 billion USD with no IPO in sight.

Image Credit: DJI

Ehang, the developer of Indiegogo crowdfunding hit Ghost Drone, has raised $42 million USD in series B funding led by GP Capital with participation of existing investors GGV Capital, Zhen Fund, Lebox Capital and Oriental Fortune Capital.

Ehang did not disclose the valuation of this round, but indicates that it is 100 times that of 16 months ago when the startup was founded.

The money from this latest investment will go toward R&D for both personal and commercial drones, market expansion, and expanding the team. Hu Huazhi, the company’s founder and CEO, disclosed that the drone maker has welcomed four former managers from Chinese internet giants onboard recently.

The company’s flagship product the Ghost Drone is designed as an aerial photography drone outfitted with GoPro. Designed for ease-of-use, the Ghost can be controlled via a compatible mobile app instead of a radio controller, which can be cumbersome for beginners to use. A more convenient tilt control feature is integrated to allow the user to manually pilot the quadcopter by tilting and turning their phones.

Like its main competitor DJI, Ehang is planning to go beyond the territory of personal drones, which are mainly used for aerial photography and video, according to Hu. The startup plans to develop products designed for areas as diverses as agriculture & forestry, search and rescue, mapping, and logistics. Hu said a new flagship product is going to be launched in the second half of this year.

Driven by the global quadcopter craze, Ehang is among the most heavily funded Chinese competitors of DJI, which received a massive $75 million USD round earlier this year.

After receiving over $1 million USD from crowdfunding websites like Indiegogo ($850,000 USD) and its Chinese peers Demohour ($60,000 USD) and Taobao Crowdfunding (222,000 RMB), Ehang has landed a $10 million USD in A round at the end of last year.

The future looks bright for drone startups. According to a report by research institute EVTank, over 378k civil drones have been shipped in 2014, of which 33% are for professional customers and 67% are consumer grade drones. The global shipment is expected to surge 50% in 2015 and creates a $25.9 billion USD market by 2020.

Related Articles:

Drone Developer Ghost Announces US$10M Series A Funding

DJI Quadcopters And A New Breed Of Dominant Chinese Brands

Drone Developer DJI Pockets US$75M from Accel Partners

Image Credit: Ehang

DJI, the Chinese drone maker, has received US$75 million funding from Accel Partners, a Silicon Valley venture capital which is also investor in Facebook and Dropbox. The deal is concluded at a valuation of US$8 billion, and DJI is in further investment talks with potential partners and investors which are estimated to value the company around US$10 billion.

The Shenzhen-based company previously received two rounds of eight-digit USD investment from Sequoia Capital China and Mansion Capital.

Founded in 2006, the Shenzhen-based company is a global leader in selling commercial and recreational drones, shipping its products to more than 100 countries.  A CICC report shows that DJI accounts for more than 60% of the world’s drone market, with 70% to 80% shipped overseas and the rest to the domestic market.

The company has generated a revenue of around US$500 million last year and this figure is expected to exceed US$1 billion this year, according to a Forbes report released this Tuesday.

DJI’s drones have been used primarily for aerial photography and video, but the company is expecting to apply them in more fields with the new funding. “We aspire for DJI to offer a platform for unbounded creativity and exploration across areas as diverse as filmmaking, agriculture, conservation, search and rescue, energy infrastructure, mapping, and more,” said Frank Wang, founder and CEO of the company.

As part of the efforts to achieve this goal, the company has teamed up with Chinese video service Youku Tudou to develop a platform where users can upload DJI videos.

Despite the dominant market share, DJI is facing stiffer competition from new rivals as the whole drone market heats up. One of its most prominent domestic competitors is Guangzhou-based Ehang. The company’s flagship product Ghost is as an easy-to-fly aerial photography drone outfitted with a sport camera and controlled using a smartphone app.

Ehang, one of the Top 5 finalist at TechCrunch Beijing Startup Competition, has received US$10 million in Series A funding at the end of last year. Another Chinese drone maker ZERO just inched partnership with computer peripheral equipment maker RAPOO Technology.

Drones have have been a focus of Accel’s investment recently. The venture capital also made an investment in Skydio, but DJI’s deal is by far the largest investment it has ever made in this area.

Image credit: Technode.com, the DJI Inspire 1 and Phantom 3 models on display at last week’s GMIC conference in Beijing.

China sets out the be the best at a lot of things. In tech, it’s been a hit and miss process.

From chip technology to operating systems, the country can’t move fast enough in its bid to bring innovation home and send their products global. It’s been a rough ride though. Both the hardware and software industries have been pigeonholed as copycats of their foreign counterparts. On top of that, the country’s internet giants have put their foot down in virtually every tech vertical available, suffocating areas of the ecosystem for new players. 

For drone company DJI however, they’ve achieved the one thing that most China tech can only dream of at this point. They are the quality leader in their field, not just for China, but the world. 

Last week at Global Mobile Internet Conference (GMIC) in China, we saw the newly released Phantom 3 and Inspire 1 quadcopter models up close. By far one of the most popular exhibits on the exhibition floor, the drone demos attracted a sizable crowd of onlookers. 

CEO Frank Wang is a self-confessed fan of Steve Job’s leadership, saying in the past that he styles his ‘aggressive’ management strategy on the late icon’s reputation. In an interview with the WSJ last year, he noted that “Chinese companies now are getting better; before, they lagged behind…  more Chinese companies will go global and their image will gradually change.” 

Image could well be another Jobs-inspired feature of DJI, with the latest DJI drones taking on an eerily similar minimalist white in their branding approach. In fact, the entire company seems distinctly foreign compared to its local counterparts, which could explain the company’s global success. 

Despite their growth overseas, DJI is still yet to match the market share stats back home, but it’s high on the Shenzhen-based company’s agenda. This Wednesday, they formally launched a marketing and publishing partnership with Chinese streaming service Youku Tudou.

“This new partnership with DJI fits perfectly into Youku Tudou’s rapid advancement of its multi-screen media and entertainment ecosystem,” said Jerry Li, Youku Tudou’s Senior VP. Li also mentioned that part of their strategy would involve “building communities” using the new platform. The hope is that the partnership will give DJI  a home-base in video publishing and marketing, with a view to engage consumers in its own territory.

As their quad copters continue to top reviews word wide, DJI form an interesting case study as global leaders in their field. The country continues to pour literal billions into kickstarting local innovation, and it’s likely we’ll see more of this new breed of globally-dominant Chinese technology companies. 

Images: Onlookers at the Global Mobile Internet Conference (GWIC) held last week in Beijing. DJI showcased the Inspire 1 professional quadcopter and its high-end consumer drone the Phantom 3.

Group photo from the DJI/Youku Tudou partnership launch last Wednesday.

Chinese video service Youku Tudou has announced a partnership with Shenzhen-based drone company DJI, making Youku the exclusive China platform for uploading DJI videos. 

The partnership was announced during a series of live webcast events in New York, London and Munich on Wednesday evening, along with unveiling new DJI products including the long awaited Phantom 3 quadcopter. 

“Youku Tudou is thrilled to partner with DJI to give users a platform to share and showcase their creativity,” Director of Youku Communications Jay Chen told Technode. 

DJI quadcopters are one of the most widely used consumer drones in the world. The Phantom 3 is an improvement on their previous crowdpleaser Phantom 2 Vision +. The Phantom 3 Professional model will go for US$1259 and features a 4k camera, addressing complaints that the Phantom 2 lacked resolution. 

DJI also released an ‘Advanced’ Phantom 3 model alongside the Professional, which features a
1080p camera (the same as the Phantom 2 Vision+), which retails for US$999. 

The new models will feature LightBridge streaming – previously an optional extra – which will enable (near) live streaming to a device on the ground, which means the quadcopters now all have out-of-sight flying applications.

Both Phantom 3 models will feature upgraded flight stabilization systems, reconfigured GPS and more advanced motors. The company has dubbed the new model “the most revolutionary consumer quadcopter in history.”

Youku Tudou is tight-lipped on what their partnership will entail, though they did note that there would be further partnership collaboration in the future. DJI already has a channel on Youku, though this is the first official partnership between the two companies. The drone company already has a similar partnership with YouTube.

Images: Youku (Wednesday’s release event)/DJI (gold version of DJI’s new Phantom 3 Quadcopter)

Chinese drone developer Ghost, aka Ehang, announced today US$10 million in Series A funding led by GGV Capital and joined by PreAngel. The angel investments received earlier this year were from LeBox Capital and Xu Xiaoping (co-founder of venture capital fund ZhenFund), according to the company.

Ghost has also raised more than US$645,000 on crowdfunding site Indiegogo and RMB370,000 (about US$60,000) on Chinese crowdfunding site Demohour.

Its first drone was launched in May this year. The company promises to ship products from next month (January 2015). Similar to AR. Drone, Ghost drone can be controlled with mobile apps (iOS and Android). Ghost is targeting at both China and U.S. markets. It’s competitors in China’s drone market include DJI.